AGP Limited (AGP) Q1 earnings preview

TSL Research has just released an update on AGP’s previous quarter’s financial results. Here are the important points from their 1QCY24 earnings preview.

Strong Growth in Profitability

AGP is expected to report an EPS of PKR 2.25 and a Profit After Tax (PAT) of approximately PKR 739 million for 1QCY24, marking an impressive increase of around 77% over the same period last year.

Revenue Analysis

The company’s revenue is projected to reach around PKR 3.9 billion for 1QCY24. This growth is attributed to a price increase of 14% and 20% for essential and non-essential medicines, respectively. Additionally, AGP is anticipated to receive marginal support from exports, with a notable 20%QoQ growth in 1QCY24.

Gross Margin Expectations

Despite strong revenue growth, gross margins are expected to decline to 53.2% for 1QCY24, down 4 percentage points QoQ due to increased energy prices.

Future Outlook

AGP is expected to benefit from the pending deregulation of non-essential medicines and the Government’s decision to increase prices of 146 essential medicines. Given its current revenue mix of 40% essential and 60% non-essential medicines, the company is well-positioned for future growth.

Dividend Expectations

No interim cash dividend announcement is anticipated for the quarter.

PKR Mn	1QCY23A	1QCY24E	YoY	4QCY23A	QoQ
Revenue	3,899	6,407	64%	5,804	10%
Cost of sales	1,863	2,996	61%	2,479	21%
Gross profit	2,036	3,411	68%	3,325	3%
Selling, admin & marketing expenses	1,253	1,932	54%	1,707	13%
Other expenses/(income) – net	123	31	-75%	10	2.0x
Finance costs	143	378	1.6x	647	-42%
Profit before tax	517	1,071	1.1x	960	12%
Taxation	122	332	1.7x	264	26%
Profit after tax	396	739	87%	695	6%
Profit attributable to Parent Co.	356	629	77%	592	6%
EPS – Consolidated	1.27	2.25	–	2.12	–
DPS	–	–	–	2.00	–

These numbers provide insights into AGP’s anticipated financial performance for the first quarter of CY24, reflecting strong growth in revenue and profitability.

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Disclaimer:

The information in this article is based on research by TSL Research & Company Reports. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.